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General Journal Date Account Title/Explanation 04/15/07 Cash Common stock Paid-in capital in excess of par value To record

issuance of common stock. PR $ Debit 1,500,000

12/31/07 Retained Earnings $ 150,000 Common stock To record issuance and payment of 25% stock dividend. 07/01/08 Cash Common stock Paid-in capital in excess of par value To record issuance of common stock. 11/15/08 Treasury stock Cash To record purchase of treasury stock. 12/15/08 Cash $ 420,000 $ 900,000

$ Treasury Stock Paid-in capital in excess of par value-Treasury Stock To record re-issuance of treasury stocks.

230,000

09/15/09 Cash

$ Treasury Stock Paid-in capital in excess of par value-Treasury Stock To record re-issuance of treasury stocks.

350,000

12/24/09 Retained Earnings Cash Dividends Payable To record declaration of cash dividends. 01/24/10 Cash Dividends Payable Cash To record payment of cash dividends.

150,000

150,000

Credit $ $ 600,000 900,000

150,000

$ $

180,000 720,000

420,000

$ $

210,000 20,000

$ $

210,000 140,000

150,000

150,000

1. When the $2,000,000 was received for a 12-month note, cash is increased. This would be shown as cash inflow from financing activities. When cash is paid to purchase the equipment, cash is decreased. This would be shown as cash outflows for investing activities.

2. The proceeds of $ 150,000 from issuance of shares of common stocks increased cash. This would be shown as cash inflow f When mortgage bonds are retired by paying $790,000 plus $150,000, cash is decreased. The total of $940,000 would be show

3. The purchase of $ 2,000,000 inventory on account would increase accounts payable. This would be shown as an addition to

4. The declaration of the cash dividend of $187,500 would not have effect on the cash account. This would only decrease the The information about the declaration of the cash dividend will just be shown in a separate note. The $ 187,500 will be shown

5. The proceeds of $ 1,500,000 would increase cash. This would be shown as cash inflows from investing activities. The $1,00 to the net income in computing the cash flow from operating activities.

s would be shown as cash inflow from financing activities. e total of $940,000 would be shown as cash outflows for financing activities. would be shown as an addition to the net income in computing the cash flow from operating activities.

unt. This would only decrease the Retained Earnings account and increase the Dividends Payable account. note. The $ 187,500 will be shown as cash outflows for financing activities once dividend has been paid.

om investing activities. The $1,000,000 loss from sale of the machinery would be shown as an addition

Overhead Rate

Overhead cost Ave. Direct labor hours

180000 = $ 9.00 20000

Total Productions costs G 10,000 28,000 21,600 59,600 H 10,000 32,000 25,200 67,200

Direct materials Direct labor Overhead Total Productions costs Amount to be charged to customers

$ $ $ $

$ $ $ $

$ 107,280 $ 120,960

Total Overhead costs Percent of space occupied Number of employees Number of students $ 10,500 100 400 10,000

Arts and Business Buildings and Education Sciences Administration Grounds $ 3,150 $ 2,625 $ 2,100 $ 1,575 30 25 20 10 80 48 72 120 6,000 2,500 1,500 Arts and Business Education $ $ $ $ 2,625 525 252 3,402 Administration Grounds $ 2,100 $ 1,575 $ 420 $ (1,575) $ 378 $ 2,898 $ Buildings and

Total A. Overhead costs Buildings and grounds Central Administration Total overhead costs allocated Sciences $ 10,500 $ 3,150 $ 630 $ 420 $ 10,500 $ 4,200

Arts and B. Overhead cost per instruction center

Business

Education Sciences Administration $ 0.70 $ 1.36 $ 1.93

Central Administration $ 1,050 15 80 Central Administration $ 1,050 $ $ (1,050) -

75 200